CDD Fees in Winter Garden Explained

Shopping new builds or master-planned neighborhoods in Winter Garden and seeing “CDD” on listings or tax bills? You are not alone. Many of the area’s newest communities use CDDs, and understanding them helps you budget with confidence. In this guide, you’ll learn what CDD fees cover, how they differ from HOA dues, how assessments are billed, and a simple way to estimate your true monthly housing cost. Let’s dive in.

What is a CDD in Winter Garden?

A Community Development District, or CDD, is a special-purpose local government set up under Chapter 190, Florida Statutes. CDDs plan, finance, build, and maintain infrastructure and amenities within a defined boundary.

In Winter Garden and nearby Horizon West, rapid growth has required roads, utilities, stormwater systems, landscaping, and community amenities to be built early. Developers use CDD bond financing so these costs are repaid over time by property owners in the district. That is why CDDs are common in newer subdivisions and large master-planned areas.

A CDD is governed by a board of supervisors. Early on, the developer typically controls the board. Over time, control shifts to resident-elected supervisors.

CDD vs HOA: What you pay for

Here is a clear way to separate the two:

• CDD (public entity)

  • Purpose: Finance and maintain community infrastructure and district-owned amenities.
  • Powers: Issue bonds and levy non-ad valorem assessments for debt and annual operations.
  • Typical uses: Roadway lighting, stormwater and drainage systems, lakes, utility-related systems, landscaping of district areas, trails and parks, and large amenities like clubhouses and pools. Also repays bond debt.

• HOA (private association)

  • Purpose: Enforce community rules and manage HOA-owned property per the CC&Rs.
  • Dues: Billed directly by the association, usually monthly or quarterly.
  • Typical uses: Private common-area upkeep, staffing and programming for HOA amenities, reserves for HOA asset repairs, gate or security staffing, trash if included, and administration.

Key points for you

• You may pay both. Many communities have a CDD and an HOA. Each funds different responsibilities.
• CDD assessments are mandatory, like a government assessment, and are collected via the county tax bill or a direct bill from the district.
• The debt portion of a CDD can last for many years and has a real impact on total ownership cost.

For broader context on special districts in Florida, see the Florida Association of Special Districts.

How CDD assessments work

CDD assessments generally have two parts: debt service and operations and maintenance.

Debt service and O&M basics

• Debt service: Repays bonds used to build infrastructure. The amount and term are defined by the bond documents and district engineer’s report.
• Operations and maintenance (O&M): Covers annual costs to maintain district-owned assets, like landscaping, utilities for common areas, routine repairs, and any district-managed amenities.
• Annual changes: O&M is adopted each year by the board after public budget hearings. It can increase or decrease. Debt service follows the bond schedule unless new bonds or special assessments are adopted.

Allocation by lot or unit type

Assessments are allocated using the district’s methodology, which may consider lot size, unit type, or assigned benefit units. It is common to see different tiers where larger lots or certain product types pay more.

How and when you pay

• Collection: Many Winter Garden CDDs place assessments on the county tax roll as non-ad valorem assessments. They appear as separate line items on your property tax bill. Others may bill owners directly.
• Timing: Debt service often runs for decades, while O&M is set annually. Some districts allow you to prepay the remaining bond principal for your lot. You would request a payoff letter from the district to confirm exact numbers.
• Tax bill basics: For a look at how non-ad valorem assessments appear on the tax bill, visit the Orange County Tax Collector.

Estimate your true monthly cost

Understanding your full monthly number helps you shop confidently and compare communities on an apples-to-apples basis.

A simple formula

Monthly housing cost ≈ PITI + HOA + CDD + other recurring items

• PITI: Principal and Interest (mortgage), Property Taxes, Homeowner’s Insurance, plus Mortgage Insurance if applicable.
• HOA: Monthly HOA dues if the community has an association.
• CDD: Monthly equivalent of the annual CDD assessment. If billed annually, divide by 12.
• Other: Utilities, private trash, lawn service, flood or windstorm insurance if needed, reserve contributions, and routine maintenance.

How to get each number

• Mortgage P&I: Ask your lender for a monthly estimate based on your loan amount, interest rate, and term.
• Property taxes: Use the latest tax bill or check the Orange County Property Appraiser to understand assessed values and millage. Many Florida buyers use 1.0 to 1.5 percent of the purchase price as a rough annual estimate, then refine with parcel-specific data.
• Homeowner’s insurance: Request a quote for the specific property.
• HOA: Confirm with the HOA or listing documents.
• CDD: Ask the seller, listing agent, title company, or district manager for the current annual amount and whether any bond prepayment options are available.

Typical ranges

• In many Florida master-planned communities, annual CDD assessments often range from about 1,200 to 3,000 dollars, with some amenity-rich or heavily bonded districts exceeding 4,000 dollars. Exact amounts vary by community, lot type, and bond structure.

Illustrative example

This is for illustration only. Your exact numbers will differ.

• Purchase price: 400,000 dollars
• Mortgage: 30-year fixed at 6.0 percent, approximate P&I: 2,398 dollars per month
• Property taxes: 1.2 percent estimate, 4,800 dollars per year, 400 dollars per month
• Homeowner’s insurance: 1,800 dollars per year, 150 dollars per month
• HOA dues: 150 dollars per month
• CDD assessment: 1,800 dollars per year, 150 dollars per month
• Estimated total monthly cost: 3,248 dollars per month

Simple cost snapshot (example)

• Mortgage (P&I): 2,398 dollars (74 percent)
• Property taxes: 400 dollars (12 percent)
• Homeowner’s insurance: 150 dollars (5 percent)
• HOA dues: 150 dollars (5 percent)
• CDD assessment: 150 dollars (5 percent)
• Total: 3,248 dollars (100 percent)

Note: Lenders include recurring CDD and O&M assessments in qualifying ratios, so they can affect loan approval and your escrow.

Buyer checklist for CDD communities

Use this list to verify the numbers before you write an offer.

1. Request the CDD disclosure and the seller’s most recent property tax bill. Confirm whether the CDD appears on the tax roll as non-ad valorem.
2. Ask the seller, listing agent, or title company for:
   • Current year CDD amount, separated by debt service and O&M.
   • Bond amortization schedule or a payoff quote for your lot.
   • The district’s adopted O&M budget and most recent audited financials.
3. Review county records. Check the Orange County Property Appraiser and the Orange County Tax Collector to see how the assessment is listed and what was billed in prior years.
4. Contact the district manager. Request written confirmation of assessments, allocation method, and any prepayment options. The manager’s contact details are typically listed on the district’s official site or in county records.
5. Confirm with your lender. Ask how the CDD will be treated for debt-to-income and whether the assessment will be escrowed monthly.
6. For resales, request a payoff letter if you plan to prepay bond principal, and confirm how closing prorations will work.
7. Consult a tax professional on deductibility. Treatment varies based on whether portions are considered taxes or special assessments.

Myths vs realities

• “CDD fees are the same as HOA dues.” They are not. A CDD is a governmental entity, and its assessments fund infrastructure and district operations. HOA dues fund HOA obligations under the CC&Rs.
• “The CDD will go away soon.” Debt service continues until bonds are paid, and districts often continue to operate and maintain infrastructure after that. Dissolution requires legal steps.
• “CDD amounts never change.” O&M is set annually and can rise or fall. Debt service follows the bond schedule unless new assessments are adopted.
• “Lenders ignore CDD fees.” Lenders include recurring CDD assessments in your housing expense calculation.

If you want a quick read on the legal structure and powers of CDDs, review Chapter 190, Florida Statutes and the Florida Association of Special Districts overview resources.

Ready to compare specific Winter Garden neighborhoods? We can help you source official district documents, confirm assessment amounts, and build a clean monthly budget so you can buy with clarity. Reach out to Abby Greenberg to get started.

FAQs

What is a CDD in Florida real estate?

• A Community Development District is a special-purpose local government created under Chapter 190 to finance and maintain infrastructure and amenities for a defined community.

How are CDD fees different from HOA dues?

• CDD assessments fund public-style infrastructure and district operations, while HOA dues fund HOA responsibilities like private common-area upkeep and rule enforcement.

Where do CDD fees appear on my bill?

• Many districts place assessments on the county tax bill as non-ad valorem line items, though some districts bill owners directly.

Can I pay off my CDD bond early?

• Some districts allow prepayment of the remaining bond principal for a specific lot; you must request a written payoff quote from the district to know your exact options.

Do CDD fees affect mortgage approval?

• Yes. Lenders include recurring CDD assessments in qualifying ratios and may escrow them with your monthly payment.

Are CDD payments tax deductible?

• Deductibility depends on the nature of the assessment and IRS rules; consult a tax professional for guidance on your specific situation.